Fund Investors Still Glum on Commodities

By Brendan Conway

It’s the same old story in the commodity market: Index and fund investors are retreating.

From Citigroup’s commodity research team this morning:

[Y]ear-to-date trading flow data suggest more than $38Bn of aggregate net outflows for passive index swap and listed commodity-linked ETFs. This retrenchment compares to total net inflow estimates of $25Bn during the same 48-weeks in 2012 or about a $63Bn year/year downswing. Passive index net redemptions for the short holiday trading week ending 3rd December are assessed at $1.7Bn amid a 0.5% total return for the DJ-UBS index. For our previous report, we issued figures for October passive retail and institutional commodity AUM to just below $273Bn. Adding estimates for actively managed commodity investments would lift this total to $339Bn; a drop of 2% month/month and 18% year/year.

When it comes to ETFs, investors this year have moved the most money into ProShares Ultra Silver (AGQ) and iShares Silver Trust (SLV), but the ranks of ETFs with inflows thins out pretty quickly. One item of note: There’s a broad commodity-themed strategy pulling in money during in 2013, the Elements Rogers International Commodity Index ETN (RJI).

Meanwhile, investors have flooded out of SPDR Gold Trust (GLD) and other gold-related funds. Oil trackers are also high on the list of YTD outflows. Data are from XTF.

Copyright 2016 Dow Jones & Company, Inc. All Rights Reserved

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our
Subscriber Agreement
and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit